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Fenchurch Legal - what is the situation ?

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13 comments

  • Lucja (Mintos)
    Community moderator

    Hello Dorin,

    Thank you for your questions.

    Please note that all the latest information is available in the recovery updates: https://www.mintos.com/en/funds-in-recovery-updates/

    According to the updates, Fenchurch will have to transfer borrowers’ repayments as soon as they are received, at the latest by the end of August 2023. In principle, an agreement has already been reached, and we are working on formalizing necessary transactional documents. Many Fenchurch loans are taking longer than expected to settle as national lockdowns, covid restrictions, and other imposed government regulations in the UK have had a significant impact on the legal cases that Fenchurch has been funding for the past 24 months. Before Covid-19, court cases took on average 9-12 months, while they now take 12-18 months (and some take even longer). As a result, some investors might see that some loans are taking longer to be repaid. Fenchurch is currently pursuing refinancing options. If the refinancing is successful, Fenchurch would be able to buy back outstanding investments, and investors might receive their money earlier.

    To ensure investors are receiving adequate compensation for investments that will be paid back later than initially scheduled, interest on any delayed repayments will be increased to 1.4x the base interest rate (investors will receive 13% on average).

    When it comes to Dineo, they decided not to transition to the Notes setup. As a result, we’ll wind down cooperation with the lending company. We expect that the company will cover the amounts due to investors in full by the end of the year, and investors will receive all pending payment interest. We agreed on a repayment plan with Dineo. According to the plan, the company has to make the first payment in October, and it has to pay pending payments interest. Dineo also paid €428 in pending payment interest in August.

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  • Dorin

    Hi, Lucja !

    Thanks for feedback.

    Could You confirm that we, the investors, are receiving and will receive regularly (every month) from "Fenchurch" and "DineoCredito" payments of interests, increased to 1.4x, and we'll receive the principals not later the December 2022 from "Dineo" , August 2023 for "Fenchurch" ?

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  • Lucja (Mintos)
    Community moderator

    As mentioned in the update, this is what we agreed on with each company and what we expect to happen. We keep working closely with both lenders to assure the realization of our mutual agreements.

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  • NIKOLA PIKHARTOVÁ

    Could you please give us an update on Fenchurch Legal loans? Thank you.

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  • Kai

    I would like to support Nikola's request for current information. Thanks in advance!

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  • Lucja (Mintos)
    Community moderator

    The lending company Fenchurch Legal is paying according to the new schedule and the principles that have been agreed upon. In May, €128k was received and distributed to investors. While repayment highly depends on the timing when Fenchurch’s clients (law firms) repay their debt, as there are delays. March 2024 is still the best estimate of when the debt will be repaid in full to Mintos investors.

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  • Kai

    Thanks for the info, Lucja!

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  • Steffen Henrik Jäger

    Hi Lucja,

    is the March 2024 timeline still valid?

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  • NIKOLA PIKHARTOVÁ

    I would like to also ask for an update. Thank you

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  • Lucja (Mintos)
    Community moderator

    Hi Steffen Henrik Jäger and NIKOLA PIKHARTOVÁ

    Thank you for your questions and patience. We shared in October's update the below information.

    While there are some delays in the repayment schedule, the August amount was paid in full and for September we received €85k. The company expects to be back in line with the repayment schedule in October by also covering the remaining payment for September.
    We also received updated estimates on future collections from Fenchurch's end-borrowers. If fulfilled, the collections would ensure full repayment of the company’s debt to investors on Mintos by the end of September 2024, with larger repayments to start at the beginning of 2024.

    You can follow the updates via your account in the overdue section. We post them every month and if you have any other questions feel free to reach out to our support team.

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  • Joakim

    From the last update: Fenchurch sent proof of payment for €50k and an additional payment is expected in the first week of February. The missing December payment is expected to be made up starting from February.

    ^It is now the end of February and we still haven't seen any of these payments on our accounts. Are they coming or what?

    From Lucja: We also received updated estimates on future collections from Fenchurch's end-borrowers. If fulfilled, the collections would ensure full repayment of the company’s debt to investors on Mintos by the end of September 2024, with larger repayments to start at the beginning of 2024.

    ^When do you expect these larger repayments to start? We are in the beginning of 2024 and nothing has changed. Could you provide us with a repayment plan for 2024 so we have an idea about the timeline and whether Fenchurch can keep it?

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  • Bruno

    Lucja (Mintos),

    Marek (Mintos),

    It is still stated in the monthly updates for Fenchurch that the "Expected time" for recovery is 2024 (September if we look at the update of October 2023), and the same in the Excel file you share with details about the payments.

    Despite that, and although there was no communication at all, according to the monthly update released today, we are surprised with a link to a new schedule until April 2026.

    What the hell is this? Are you kidding us? I hope this is a joke

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  • Marek (Mintos)

    Dear Bruno,

    As explained in the direct communication we have had, the updates and the situation tend to change and evolve and this case is no exception. The situation has changed and the repayment schedule has changed as well, therefore the information from the most recent update is correct and our current estimation is that the funds from Fenchurch Legal should get repaid by 2026, as per the agreed repayment schedule.

    The information displayed at the overdue page should get updated in the following days, so it reflects the information from the most recent update. Apologies for any confusion this may have caused.

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